Faulk Ltd.has provided the following information:

Under the asset test only,which segments are reportable?
A)Segments A,B,and C only
B)Segments A and D only
C)Segments B and C only
D)All the segments are reportable.

Question

Faulk Ltd.has provided the following information:

Under the asset test only,which segments are reportable?
A)Segments A,B,and C only 
B)Segments A and D only 
C)Segments B and C only 
D)All the segments are reportable.

Quizplus · Accepted Answer

Without more information, we cannot determine which segments meet the quantitative thresholds for being reportable under other tests such as revenue or profit. However, under the asset test, any segment that meets the threshold for total assets must be reported. The information provided does not give us any reason to believe that Segment D has significant assets, so we can conclude that only Segments A, B, and C are reportable under the asset test.

Faulk Ltd.has Provided the Following Information